BofA Asks Judge to Throw Out Mortgage Suit

By

Chad Bray

April 29, 2013 8:45 p.m. ET

Bank of America Corp. asked a federal judge Monday to dismiss a civil lawsuit by federal prosecutors over the quality of home loans sold by its Countrywide Financial unit to mortgage-finance firms Fannie Mae and Freddie Mac in the buildup to the U.S. financial crisis.

Federal prosecutors in Manhattan have alleged that Countrywide, facing revenue shortfalls as the subprime mortgage market imploded in early 2007, eliminated checks on loan quality in a streamlining effort known as the "Hustle," while assuring...